Management buys IPAC
New Zealand managed fund research house IPAC Securities has been bought out by its management team, headed by David van Schaardenburg and changed its name to FundSource.
Under the terms of the deal, van Schaardenburg has bought 100 per cent of the company, including the interests aligned to the founding directors of ipac Australia.
Van Schaardenburg, who is the executive chairman of FundSource, says the company has no formal ties up with ipac in Australia, but they will continue to work together as needed.
The change is logical as ipac Australia closed its fund rating and research business in 1995 to concentrate on its core businesses which include running one of Australia's biggest master trusts and a sizeable financial planning business.
Van Schaardenburg says the separation was amicable, and the two groups will "continue to liaise and potentially work together on issues of mutual benefit."
FundSource will focus on providing services to professional financial advisers, and fund managers. It is also continuing to provide research and manager selection services to New Zealand Funds Management.
Van Schaardenburg says the change of ownership will allow FundSource to shift its focus from branding and ownership issues to growth.
Van Schaardenburg says there are new opportunities in the market for selling research to advisers as many of the new entrants to the market come from a sales background rather than a professional advice one.
They need research in order to give their clients good quality advice, he says.
"The validity of research is higher for those sales people where technical skills tend to be lower."
The FundSource name was first used last year when IPAC took an exclusive sponsorship of the investment channel on Telecom's Xtra website.
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